Maintenance payments

Contributed by Danny Shaw and Dianne Anagnos and current to 1 September 2005

THE REQUIREMENT TO CLAIM CHILD SUPPORT

A person receiving family tax benefit A can have the benefit reduced to the minimum rate if they do not take reasonable action to get maintenance payments from the non-resident parent.

What is ‘reasonable action’?

The requirement to take reasonable action is satisfied if the person lodges an application with the Child Support Agency to assess and/or collect maintenance.

Exemptions

In some situations, the person can be exempted from the requirement to seek maintenance, for example, where:

• there is actual, or fear of, violence from the other parent, or
• the father’s identity is unknown.

The person should ask to see a Centrelink social worker to discuss possible exemptions from seeking maintenance.

EFFECT ON THE INCOME TEST

Maintenance income is not income under the general income test for social security payments. Instead there is a separate maintenance income test which applies solely to maintenance income and only affects family tax benefit A above the base rate (schedule 1, clause 1 Family Assistance Act (Cth)). Maintenance income is defined in s.3 of the Family Assistance Act.